What Is Bitcoin ?

What is a Virtual Currency ?

What is bit coin , in other words " virtual currency ". It is "currency" of "virtual". First of all, even from "currency", as you can see from "coin", bit coin is money. Like rupees and dollar, it has not changed to being "money". As "money", currency units exist like rupee and dollar. The unit of bit coin is written as BTC (bitcoin) . It can be counted as 1 BTC (1 bit coin) like 1 rupee or 1 dollar.

However, as you can see from "virtual", unlike the rupee and the dollar, there is no visual form visible to the hand. There is no coin which is written as "B" large. Bit coins are "currency" of "virtual".

Common virtual currency example:

The easiest to imagine as a virtual currency is the currency in the online game. Paying INR and dollars, you get the currency used in the game, you can buy items at shops in the game where the currency used in that game is "usable". It is a virtual currency that can only be used in the game.

There are other virtual currencies that can be used only on specific Web sites. There is a Web site that uses the mechanism to purchase 1,000 points at 1000 INR when using registration and purchasing paid service at 1,000 points. It is a virtual currency valid only within the "usable" Web site for that point.

Bit coins are similar. If you can get a bit coin, you can buy things and services where bit coins are "usable".

What is different between bit coins
What is the difference between the virtual currency and the bit coin as introduced in the previous example? Actually, the reason why it exists is completely different.

A virtual currency that can be used only within a specific game or website is made for each company, and by enclosing the user, it is possible to make the administrator of the virtual currency (= the company operating the game or website) profitable It is aiming.

One bit coin is a virtual currency made to facilitate economic activities, like the rupee and dollars operated on a national level.

Bit coins are aimed at making it "usable" for daily life all over the world. Banknotes and coins do not exist because they are virtual currencies, but instead they are made to substitute personal computers and smartphones for your wallet so that you can buy and sell objects.

Bitcoin and Electronic Money:

What is electronic money:
As a concept similar to the virtual currency , electronic money exists. It is a word frequently appearing on explaining bit coins . Since confusing these will interfere with understanding, I will organize them.

Electronic money is a means of realizing settlement electronically (= data exchange) without using paper money or coins. There are types to execute settlement online, there are also non-contact payment methods that are becoming mainstream recently. It is something you use when you get on a train or paying at a convenience store.

It is already a mechanism that has been penetrating into daily life, so I think that many people actually used it. It is very convenient because it takes time and effort to take out small change from the wallet.

Bit coins also have features that can be used as electronic money. Since bit coins are virtual currencies that do not have banknotes or coins in the first place, it is natural that they can be used as electronic money.

So the bit coin is electronic money
When explaining bit coins, it is pushy to explain that it is electronic money.

Electronic money that is commonly used at present is basically present for electronic settlement using the currency used in the area.

For example in Japan, in order to make payment in yen more convenient, electronic money will be used instead of yen bills and coins. As a result, the user will deposit the owning yen to the terminal of the electronic money, or put the money in the bank account used when paying with electronic money.

Although they do not use paper currency or coins, they realize the payment electronically, but as a matter of fact they are still in exchange of the yen currency.

A bit coin is not to charge a circle to some terminal.

When purchasing products using bit coins, you must first exchange currency of the circle you own into a currency called bit coin. Only after changing INR to bit coin, payment with bit coin can be executed.

The flow of payment after exchange for money is similar to general electronic money. In a shop that accepts payment with bit coins, it performs electronic settlement with bit coins. Then, the number of bit coins owned by him is reduced, and the number of bit coins owned by the shop increases.

Bit coins are currency. Unlike INR and dollar it is virtual but it is currency. Electronic money is a mechanism that enables you to settle money without using money. Virtual currency = electronic money, is not.